Purchased Anthracite Capital (AHR) and ClickSoftware (CKSW)

We purchased Anthracite Capital at $7.97 per share on Friday. Anthracite is in the business of acquiring pools of Commercial Mortgage Backed Securities (CMBS), issuing debt backed by CMBS, and making capital available to the commercial real-estate industry in the form of mezzanine loans. The shares had slipped more than 50% as part of the sub prime mortgage industry meltdown, but are now upbeat after 3rd quarter results beat estimates. Anthracite currently sports a dividend yield of 15%.

We also purchased ClickSoftware (CKSW) at $4.61 per share on Friday. ClickSoftware is a maker of Mobile Workforce Management software for the services industry. It is a global software company based out of Israel. The stock went up about 120% in the last year before dropping about 40% after 3rd quarter results, which were considered a little light.

To accommodate these purchases, we lightened further on CanRoys by disposing Harvest Energy (HTE) at $26.39 per share on Friday. The shares were down following 3rd quarter results that included a dividend cut announcement. The dividend is still impressive at over 12% and margin improvement in the refining sector could eventually trigger a rally. Our strategy is to diversify further within our high-yield portion of the portfolio.

The list of stock/options sold during the year and the gain/losses are listed below:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
Harrah’s (HET)	10/2/2006	75.61	8/7/2007	83.68	10.66	0.62
St. Joe (JOE)	8/7/2007	39.4	8/8/2007	41.8	6.23	0.47
Google (GOOG)	3/14/2007	441	8/10/2007	515.99	16.86	1.14
LOCM (LOCM)	8/10/2007	5.47	9/17/2007	6.094	11.31	0.71
PetroChina (PTR)	9/12/2006	106	10/1/2007	188.5	78.14	2.85
PetroChina (PTR)	9/12/2006	106	10/3/2007	178.05	68.39	2.22
ValueClick (VCLK)	9/12/2007	19.4	10/12/2007	28.28	45.79	3.4
Canetic Resources (CNE)	11/2/2006	13.95	10/26/2007	15.88	13.78	1.07
Harvest Energy (HTE)	11/2/2006	23.46	11/9/2007	26.39	12.5	0.96
Suntech March 45 Call	-	-	10/15/2007	5.00	-	-
TSM April 12.5 Call	-	-	10/18/2007	0.35	-	-
Realized Gain/(Loss) YTD	-	-	-	-	-	13.43

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.

Here is our updated Stock Portfolio:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Current Yield
Philip Morris (MO)	1/4/2005	46.54	72.71	9.22	56.23	4.29
Kraft Foods (KFT)	1/4/2005	21.11	32.69	2.86	54.83	3.15
Plum Creek Timber (PCL)	5/12/2005	35.5	42.96	8.18	21.00	3.74
Pfizer (PFE)	2/6/2006	25.15	22.83	-5.79	(9.24)	4.63
ICICI Bank (IBN)	5/18/2006	27.57	60.24	11.46	118.47	0.92
Taiwan Semi (TSM)	7/27/2006	8.71	9.85	6.25	13.08	3.4
Advantage Energy Fund (AAV)	11/2/2006	11.22	11.78	4.86	4.95	15.03
SunTech Power (STP)	3/14/2007	36.73	45	5.71	22.53	0
Central Europe & Russia Fund (CEE)	6/28/2007	51.5	60.79	5.78	17.89	9.6
Patni Computers (PTI)	8/10/2007	20.85	15.74	4.99	(24.57)	0.64
Bank Of Ireland (IRE)	10/1/2007	76.43	61.52	-4.88	(19.51)	4.5
Asure Software (ASUR)	10/5/2007	1.31	1.2999	4.12	(0.87)	0
Frontline Limited (FRO)	10/26/2007	43.51	40.99	-5.20	(5.79)	13.81
Canadian Solar Inc. (CSIQ)	10/30/2007	10.60	11.12	-7.05	4.91	0
Itron Inc. (ITRI)	11/07/2007	85.01	80.90	-5.13	(4.95)	0
Anthracite (AHR)	11/09/2007	7.97	8.06	-5.11	1.13	0
ClickSoftware (CKSW)	11/09/2007	4.61	4.75	-3.01	3.04	0
Cash				0.38
Total Portfolio					13.23

• For SunTech Power (STP), we wrote a call option for March 45 (see first table) and so the price is listed as $45 as we won’t participate in the appreciation beyond that plus the premium received.

A detailed analysis of Anthracite Capital and ClickSoftware will follow.